Ivory Coast, the world’s largest producer of cacao, the raw ingredient in M&M’s, Butterfingers and Snickers Bars, has shut down its borders with Liberia and Guinea, putting a major crimp on the workforce needed to pick the beans that end up in chocolate bars and other treats just as the harvest season begins. The West African nation of about 20 million — also known as Côte D’Ivoire — has yet to experience a single case of Ebola, but the outbreak already could raise prices.
via www.politico.com
Decreasing the supply of inputs (workers) will raise the price of inputs. Raising the price of inputs decreases the supply of another input (cacao). Raising the price of cacao will decrease the supply of chocolate. The price of chocolate rises.
